Choice of superannuation fund will encourage individuals to take an active interest in their superannuation and greater control of their financial future in circumstances where research suggests nearly 80 per cent of people are not financially prepared for retirement.
That is the bottom line of an analysis by the Chief Executive of MLC Corporate Solutions, Michelle Tredenick who says superannuation represents the key to the community’s financial future.
“Choice of super should be a catalyst for people to review where their superannuation is invested, how much they are investing and whether they have appropriate levels of insurance,” she says. “The best way for people to get prepared for their retirement is to take an active interest in their financial affairs and seek professional financial advice.”
Tredenick pointed to research commissioned by the Investment and Financial Services Association (IFSA) in July 2004 which found that 83 per cent of people who frequently use the services of a financial planner were satisfied with their experience and were happier, more informed and felt more financially secure.
“We believe that many employees won’t need to change their superannuation provider as many employer sponsored super funds provide a range of investment and insurance options, asset classes and investment managers, as well as discounts achieved through the collective buying power of the fund,” she says.
“The important factor for employees is that they seek professional advice to help them make the right decision for their financial needs and retirement goals,” Tredenick says.
She says employers have an important role to play in helping employees access quality financial advice and gain a greater understanding of their superannuation.
“The current public debate around super choice is focused on fees and short-term performance, when it should be focused on what investors are receiving for their fees, long-term investment performance, member education and the importance for people to seek advice,” Tredenick says. “Employers are in a prime position to help employees cut through the noise surrounding super by providing education sessions for their members in the workplace, access to quality financial advice and ensuring they provide a quality default superannuation fund.”
